The Royal Automobile Club of Queensland (RACQ) has welcomed the state government’s intention to review its compulsory third-party (CTP) insurance scheme, including an option for premium equalisation.
As one of four CTP insurance providers in Queensland, RACQ has been in discussions with the state government while calling for a “level playing field” in the scheme.
“The role of CTP in Queensland is essential – it protects motorists and, importantly, helps those injured on our roads. For the most part, the scheme works well, paying for claims, funding rehabilitation, and supporting lifetime care,” RACQ CEO David Carter said. “However, as a result of how CTP premiums are collected and distributed across the four insurers in the scheme, an unlevel playing field has been created where some insurers are receiving greater profits despite carrying less risk.”
RACQ has been calling on the Queensland government to focus on premium equalisation.
“All we are asking is for every dollar of CTP risk we hold in the scheme, we receive the same level of premium, and if an insurer holds less risk, they receive less premium. That’s fair,” Carter said. “A change like this would not impact motorists or how much you pay for CTP, nor would it impact any other professionals, including legal and health practitioners, who work in the scheme.”
RACQ will continue to work with the state government on the issue and release a submission paper as part of the CTP scheme review.
The Australian Lawyers Alliance (ALA) has also backed Queensland’s CTP scheme review, describing the scheme as stable, affordable, and well-run.
ALA is a membership organisation of lawyers acting for individuals who have suffered injuries, including those injured on the road.
“Continual improvement has been one of the vital factors in the success of the scheme. It delivers fair compensation to road trauma victims, most of whom are represented by ALA members,” ALA Queensland president Sarah Grace. “We support competition in the CTP scheme to keep the QLD scheme operating as the best scheme in Australia, with at least as many insurers as there are now, and premiums remaining affordable.”
ALA advised the state government to carefully consider the proposal to ensure the CTP scheme remains strong, benefits injured people, and fosters competition.
“We expect that during the review process, there will be calls from some insurers to make fundamental changes to our scheme by stripping rights off injured motorists,” Grace said. “We’ve seen calls for rights to be stripped in the past, motivated purely by insurers looking to increase their profitability.
“Queenslanders take the protection of their legal rights seriously and are prepared to fight to protect those rights.”
Grace highlighted the “devastating impact” that motor vehicle accidents can have on Queenslanders.
“The centre of this scheme must be about delivering fair and reasonable outcomes for injured people,” Grace said.
“The current scheme does this, and any change sought by insurers must not remove those rights and protections.”
